Mergers and Acquisitions: Share Deal vs. Asset Deal – Risks and Impediments

Alickovic, Vedran; Brauweiler, Hans-Christian

doi:10.1007/978-3-658-27110-7_16

Cited by 2 publications

(9 citation statements)

References 7 publications

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“…A share deal is defined as a transfer of a certain rate of a company's shares from one party to another. This implies a transmission of all rights, obligations, assets and liabilities from seller to buyer (Alickovic & Brauweiler, 2020). In this research however, an exception is made in case of intracompany transactions.…”

Section: Figure 6 -Stepwise Demarcation Of Real Estate Spe Share Dealsmentioning

confidence: 96%

“…Ter Braak and Bol (2007, p. 180) point out that purchasing an SPE implies for instance purchasing liabilities that are not related to the real estate, such as employment contracts, levies and fines. In this regard, all documentation that is required for the transaction will be more complex, especially when a due diligence 5 is conducted (Alickovic & Brauweiler, 2020). They however add that in case of large real estate portfolio transfers, the documentation could actually be simpler.…”

Section: Motives For Choosing Share or Asset Dealsmentioning

confidence: 99%

“…This can be achieved by accommodating real estate into a separate company, that is specifically established to legally own the real estate. After that, shares of the company can be traded instead of the real estate itself (Ter Braak & Bol, 2007;Alickovic & Brauweiler, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Previous research has mainly focused on the legal aspects of real estate SPEs. Motives for establishing SPEs are a well discussed topic (Bertane, 1974;Stogel & Jones, 1976;Sewell, 2006;Kurtz & Kopp, 1968-1969 as well as how to use it in a transaction (Seligman & Stein, 2004;Alickovic & Brauweiler, 2020). However, it is not yet clear what the effect is of real estate share deals on CRE indicators.…”

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

The Effect of Real Estate Share Deals on Commercial Property Price Indicators

Ishaak¹,

Schie²,

Haan³

2021

28th Annual European Real Estate Society Conference

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Section: Figure 6 -Stepwise Demarcation Of Real Estate Spe Share Dealsmentioning

confidence: 96%

Section: Motives For Choosing Share or Asset Dealsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Effect of Real Estate Share Deals on Commercial Property Price Indicators

Ishaak¹,

Schie²,

Haan³

2021

28th Annual European Real Estate Society Conference

View full text Add to dashboard Cite

“…This can be achieved by accommodating real estate into a separate company that is specifically established to legally own the real estate. After that, shares of the company can be traded instead of the real estate itself (Ter Braak and Bol, 2007; Alickovic and Brauweiler, 2020).…”

Section: Introductionmentioning

confidence: 99%

Does the absence of share deals distort commercial real estate indicators?

Ishaak,

van Schie,

de Haan

et al. 2023

JERER

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PurposeCommercial real estate (CRE) indicators typically include asset deals and exclude share deals. This study aims to explore the phenomenon of real estate share deals and assess whether omitting these transactions results in indicators that do not accurately reflect the market.Design/methodology/approachVarious registers in the Netherlands were used to estimate transaction volumes, total values and price developments of both share and asset deals. Share deals are company transfers and its transactions cover more than real estate. To estimate the contribution of real estate in share deals, valuations were used.FindingsIn the Netherlands, share deals are most prominent for rental dwellings. Adding share deals to volume and value indicators seems required. In price development estimates, significant differences were found for dwellings between share and asset deals. Price indices should, therefore, also include share deals, but in practice this is difficult and has little impact on the outcomes due to the low weight of share deals.Research limitations/implicationsLegislation has a major impact on choosing a share or asset deal. The significance of share deals is expected to vary amongst countries. Performing similar research in other countries will contribute in harmonising real estate indicators.Practical implicationsStatistical agencies face many challenges in the construction of CRE indicators. This study provides statisticians knowledge that can be used to evaluate possible data gaps.Originality/valueThis is the first study to estimate indicators of real estate share deals and compare these to asset deal indicators.

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Mergers and Acquisitions: Share Deal vs. Asset Deal – Risks and Impediments

Cited by 2 publications

References 7 publications

The Effect of Real Estate Share Deals on Commercial Property Price Indicators

The Effect of Real Estate Share Deals on Commercial Property Price Indicators

Does the absence of share deals distort commercial real estate indicators?

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